Real estate tax rate proposal now up to 75 cents in NK

New Kent officials are now proposing a 75-cent real estate tax rate to help fund a budget for the next fiscal year totaling just over $54.1 million.

The 75 cents per $100 of assessed value rate is up 2 cents from what County Administrator John Budesky recommended last month. During an April 14 budget work session, Budesky told county Board of Supervisors members that funding cuts of state money for localities are “a little more substantial” than earlier projections.

But along with less state money, the county could derive less than expected revenue from recent countywide real estate assessments once disputes over property values are settled by the county’s Board of Equalization, Budesky told supervisors. At least 100 assessment hearings are scheduled before the BOE in May and June. (To schedule a hearing, call 966-9609).

Budesky said the proposed 2008-09 budget could be funded if a 74-cent rate is imposed, but a 75-cent rate would give officials some wiggle room. By law, once a tax rate is officially advertised for public hearing, that rate cannot rise but can be adjusted downward.

Supervisors plan to advertise a budget proposal in May. A public hearing has been tentatively set for May 28 with final adoption scheduled for June 9.

“This is much later than we would prefer…, but we see no alternative at this point,” Budesky told the board.

The county must have a next year budget in place by June 30.

Some supervisors argued against going as high as 75 cents, preferring the 73-cent figure agreed upon last month. But those members relented after hearing Budesky’s explanation.

“I hate to say it, but I see no choice but to advertise at 75 cents,” District 5 representative Ray Davis said.

The county’s current real estate tax rate is 93 cents. The proposed 75-cent rate takes into account the recent reassessment, which raised property values in the county an average of 45 percent, and an equalized rate of 67 cents. Budesky said the 8 cents added to the equalized rate address needs in the county.

Under the current 93-cent rate, a homeowner with a house valued at $200,000 pays $1,860 in real estate taxes. That same house, assuming a 45 percent increase in value, would be assessed at $290,000 for next year. The homeowner would then pay $2,175 under the proposed 75-cent rate, a difference of $315.

Budesky said he has revised his earlier budget proposal, slashing more than $455,000. County schools, for instance, had been slated to receive just over $1 million in new county money. That figure, however, now stands at $814,000.

Schools are to receive $10,479,316 under the latest proposal. Schools had requested just over $10.9 million in county dollars.

During last week’s regular board meeting that followed the work session, supervisors heard from a group of county residents who are unhappy with the recent reassessment.

Speaking for more than two dozen residents who sat in on the meeting, Lanexa resident Alease Christian told supervisors some retired, disabled, and single homeowners saw their property values rise by more than 75 percent.

“I think that’s a tremendous increase,” she said. “These people are very upset and afraid they’re going to lose their property. They feel they’re being taken advantage of.”

Christian noted the county’s effort to open up its tax relief program to more seniors and disabled residents, but added the move will provide little help in the face of rising land values.

“You’re killing us,” Quinton resident Chris Kuhn said in reaction to the 8 cents added to the real estate levy. No one, he said, would complain if the rate remained at the equalized level of 67 cents.

Supervisors are expected to conduct further budget discussions during their April 29 work session.

The entire budget as it now stands is available for public view on the county’s web site www.co.new-kent.va.us and at Heritage Public Library and the county administrator’s office.